15, May 2015

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General overview

The Bank of England published its quarterly report which has lowered the GDP and inflation forecasts that also pointed out to the construction sector weakness and low investment that inhibit the labor productivity growth. Once again the monetary regulator noted that the strong pound (the pair EUR/GBP decline) had a negative impact on inflation.

The British pound continues to trade towards the upward trend. There was the resistance level of 1.5775 testing.

The price is finding the first support at 1.5670, the next one is 1.5550. The price is finding the first resistance at 1.5775, the next one is at 1.5950.

There is a confirmed and a strong buy signal. The price is above the Cloud and it is above the Chinkou Span. The Tenkan-sen and the Kijun-sen show a horizontal movement. The upward movement will be until the price is above the Cloud.

The MACD histogram is in a positive territory. The price is consolidating.

Trading recommendations

The potential decrease targets are two levels of support: 1.5670, 1.5550.